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7:30 Pm City of Hillsboro Civic Center, 150 E MEETING AGENDA Hillsboro Airport Roundtable Exchange Wednesday May 6, 5:30 – 7:30 p.m. City of Hillsboro Civic Center, 150 E. Main Street 5:30 Brian Lockhart Welcome Steve Nagy • Announcements • Approval of previous meeting minutes 5:40 Fred Hostetler, Bob Braze, UC Davis Noise Symposium Henry Oberhelman Report out by HARE members on lessons learned from UC Davis Noise Symposium in March 6:00 All HARE Retreat Debrief of HARE retreat including committee action item list for 2015/2016 6:10 Scott Burk, Parallel Runway Project Update Federal Aviation Administration Operational update with the opening of the parallel runway 6:20 Fred Hostetler Noise Working Group Session 6:50 Scott Kilgo SolarWorld Land Purchase Presentation on the purchase of land adjacent to SolarWorld 7:00 Break Check in with presenters and ask questions informally 7:15 Public Comment 7:30 Adjourn Hillsboro Airport Roundtable Exchange Draft Meeting Minutes February 4, 2015: Hillsboro Civic Center, 5:30 p.m. – 7:30 p.m. Draft Meeting Summary MEMBERS PRESENT Bert Zimmerly Hillsboro Airport Historian Bob Braze Citizen Bob Flansburg Alternate for House District 30 (Jurisdictional) Debbie Raber City of Hillsboro (Alternate for Mayor Willey) Fred Hostetler Citizen (Land owner adjacent to HIO) Henry Oberhelman CPO 8 (Citizen) Jack Lettieri Citizen Kimberly Culbertson CPO 9 (Citizen) Larry Altree Portland Community College (Airport Related Business) Mike Gallagher Citizen Mike Warrens Oregon International Airshow Rudi Resnick Alternate for Senate District 15 (Jurisdictional) Spencer Ford FAA (Technical Alternate) Stephen Roberts Alternate for Washington County Commission (Jurisdictional) Steve Nagy Port of Portland MEMBERS ABSENT Annette Campista Latino Business Community Brian Lockhart Global Aviation (Airport Business) Deanna Palm Hillsboro Chamber of Commerce (Business) Scott Burke FAA (Technical) CURRENT MEMBERSHIP VACANCIES Hillsboro Airport Business Association Westside Economic Alliance SUMMARY Introductions and Welcome Fred, filling in for Brian Lockhart, welcomed everyone to the meeting at 5:30 p.m. He noted that the subcommittee report out will be discussed at the retreat. The committee will also be discussing attendance and unfilled member slots, including newly selected state representatives. There was a suggestion that the committee members representing a person or an organization provide a yearly report of what is occurring to encourage collaboration with those people. Fred asked for corrections to the November meeting minutes. There were none. Mike moved to approve, Bob Flansberg seconded. Motion passed. Steve Nagy made a note that there was a change in the presenter in the last agenda item. Scott Kilgo from the Port was unavailable, so Steve will be presenting in his place. Hillsboro Airport Mogas Study Steve Nagy gave a presentation on the Feasibility and Business Case Assessment to Provide Unleaded General Aviation Fuel at the Hillsboro Airport. The presentation focused on the purpose of the assessment, methodology, summary of findings and follow up plans. Steve gave background information on the history of the use of Avgas and the FAA’s plans to transition the fuel into an unleaded fuel. He also discussed why Avgas is used in aircraft and why it still contains lead. The purpose of the study was to assess the feasibility and business case for providing mogas at HIO until a replacement fuel for Avgas is deployed and available. The study was completed by KB Environmental Services and Port staff. The Unleaded Fuel Working Group from HARE also provided input on the scope for the consultant. The study included looking at whether or not mogas is available for distribution within the Portland metropolitan market; assessed operations and the fleet for leaded fuel use; and completed a survey of pilots and stakeholders within Oregon to see if they would utilize unleaded fuel and under what market conditions would purchase it. They also looked at the business case for the viability and sustainability of supplying unleaded fuel at HIO both in the short and long term. The average annual percentage of Avgas purchased at HIO has gone down by about 2.35% between 2006 and 2013. In looking at the aircraft that are either based at Hillsboro Airport or could reasonably purchase fuel at Hillsboro, between 8.5% and 29.5% have the potential to use mogas if it was provided. This assumption was based solely on the engine type registered with their aircraft. The study results showed that about 63% of those who returned their survey would use mogas if it were available. The cost at which 80% of the respondents would consider purchasing it was $4.99. The study also found there were three suppliers within 30 miles that can provide ethanol-free mogas. The business case assumptions looked at having one of the existing FBOs providing the fuel and then having a new vendor provide the fuel if no existing FBO would be willing to provide it. The analysis looked at start-up costs, operating and maintenance costs, fuel sales trend, fuel costs and the rate of return. When looking at the business case for a new vendor to come in and sell the mogas, they would break even if mogas sales were increased 10% over what the current Avgas sales are. The payback with that percentage would be approximately 12 years. If an existing FBO were to sell the fuel, the company would also have to have increased mogas sales of 10% over what the fuel sales had been previously. At that 10% increase, the FBO would make a profit after about 6-7 years. The consultant suggested that the Port look at assisting fuel suppliers to provide fuel storage/dispensing equipment, using an existing storage tank, using a smaller tank (less than a 5,000 gallon mobile storage tank) or doing a temporary or trial arrangement to ascertain attractiveness of mogas. The next steps in the process are for the Port to identify and work with HIO FBOs who are interested in initiating unleaded mogas fuel use at HIO through a pilot program. If there are not any FBOs that are interested, then the Port will identify and work with other businesses who are interested in initiating unleaded mogas fuel use at HIO. Fred asked Henry provide some comments on the report as he was the chair of the Unleaded Fuel Working Group. The working group put together a letter to Vince Granato encouraging the Port to explore a pilot program of offering mogas at HIO. Steve said the next steps will be to reach back out to the FBOs to see if they can put together a proposal to the Port on how they might be able to provide mogas at HIO. Henry said that the FAA has been working on their replacement fuel program for ten plus years. He said that Steve’s points were pretty clear, however there is still uncertainty. He said that the price of fuel is a factor and how pilots will feel/will want to use the mogas as opposed to Avgas. The lead subcommittee was unanimous in supporting the need to reduce the amount of leaded fuel use. He noted that while there is no proven documentation noting a direct link between the use of leaded fuel and health impacts, however all the information from the EPA and FAA shows that it is a good idea to explore alternatives. Mike Gallagher said Grants Pass Airport has set the standard with offering this fuel in making it as easy as possible to offer the mogas by just having a mobile truck. He hopes that the Port will be able to follow their lead. Mike thinks even if the FAA is able to develop an alternate fuel that does not have lead; it will be significantly more expensive than mogas. He thinks it will still be a good business case for the long term. He also noted to his knowledge, none of the airports that currently offer mogas have stopped offering it. It is a modest reduction, but it is still a reduction. It reduces the cost of flying for those that fly smaller aircraft, there may be an increase in business as it offers options for those who are looking to fly recreationally. It’s good for the environment, good for people operating the airplanes and it will be good for the businesses that take it on long term. Henry said the lead subcommittee plans to continue to meet and follow the leaded fuel issues. He said that the subcommittee is asking the Port to explore a pilot program at the airport. Debbie Raber noted that the City of Hillsboro will support the HARE Unleaded Fuel Working Group on their request. The city is thankful to both the committee and the Port for their work on the project and look forward to continuing to explore solutions to this issue. Fred requested a vote for the committee. The vote was unanimous. Steve abstained from the vote. Fred asked that Henry add Brian Lockhart be added to the CC line to the letter. Hillsboro Airport Financial Overview Rob Schultz, a Financial Analyst for the Port of Portland, provided a 10-year financial overview of the Hillsboro Airport. The presentation included an overview of the Port’s financial structure and then provided a historical financial overview of the airport. Hillsboro Airport (HIO) is not funded by the property tax revenue that is collected by the Port. While HIO does have a positive cash flow from operations, once capital expenditures are included, the airport is not profitable. The capital investments at the airport are funded by federal and state grants, HIO’s gross profit and the Port Cost Center. Rob gave an overview of the Port’s financial structure. The port’s budget is split into two different categories.
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